Tesla Correlation to Big Tech Breaks Down. Blame Bitcoin
Tesla Inc.’s shares have become less correlated with those of large U.S. technology companies ahead of the electric-vehicle maker’s earnings report and Bitcoin may be the reason why.
The 20-day correlation between Tesla’s stock price and the Nasdaq 100 index has fallen from 0.83 on June 17 to 0.14 as of Wednesday. A decline can also be found in the relationship between the EV company’s shares and the NYSE FANG+ index, which includes the biggest tech firms such as Facebook Inc., Apple Inc., Amazon.com Inc. and Netflix Inc. Tesla reports earnings on July 26.
Tesla Inc.’s shares have become less correlated with those of large U.S. technology companies ahead of the electric-vehicle maker’s earnings report and Bitcoin may be the reason why.
The 20-day correlation between Tesla’s stock price and the Nasdaq 100 index has fallen from 0.83 on June 17 to 0.14 as of Wednesday. A decline can also be found in the relationship between the EV company’s shares and the NYSE FANG+ index, which includes the biggest tech firms such as Facebook Inc., Apple Inc., Amazon.com Inc. and Netflix Inc. Tesla reports earnings on July 26.